The decline in YG Entertainment's stock was triggered by the announcement of a police investigation into singer G-Dragon and the company's executive producer, Yang Hyun-suk, concerning potential copyright violations. This development interrupted the company's recent six-day streak of rising stock prices which had been buoyed by impressive second-quarter financial results.

At 9:22 a.m. on the 13th, YG Entertainment's shares were valued at ₩97,200, marking a decrease of ₩4,900 or 4.80% from the previous trading session. Initially opening at ₩102,000, the stock reached an intraday low of ₩97,100, registering a total drop of 4.89%.

This decline stands out against the backdrop of YG Entertainment's recent market success. On August 8, the company announced it had regained profitability in the second quarter, reporting consolidated revenue of ₩100.4 billion and an operating profit of ₩8.4 billion. Net income was positively reported at ₩11.2 billion, reflecting a year-over-year improvement. The stock peaked at a 52-week high of ₩104,900 on August 12.

According to sources within the police, the Mapo Police Station in Seoul began an inquiry after receiving a complaint last November from a composer referred to as "A." The composer accused G-Dragon and Yang Hyun-suk of breaching copyright laws by allegedly reproducing and distributing one of his works without permission as part of an album.

YG Entertainment has refuted these accusations. According to a statement released to Ilgan Sports, a company representative clarified, "This issue originates from a 2009 solo concert where two songs with the same name were mistakenly included in the setlist. It does not pertain to unauthorized album reproduction."

Reports indicate that the police have conducted interviews with individuals involved and have executed two searches at YG Entertainment's main office as part of the ongoing investigation.